With the tax season drawing closer, most taxpayers are getting ready to file their returns. In case one needs more time, the IRS gives room for extension in filing. However, failing to meet the deadline may result in various consequences. This piece thus seeks to give an explanation of missing the tax filing deadline in 2024, with particular emphasis on the IRS tax filing extension and what happens if one fails to meet the set deadline.
Know the Tax Filing deadline
For most Americans, taxes for the 2023 tax year were due on April 15, 2024. If you weren’t ready to file by that date, you can get an extension by filing IRS Form 4868. It gives you a six-month extension, which moves your deadline to October 15, 2024. You have to go to the IRS website, download the form, fill it and submit. But be careful: This extension is for filing your return, not for paying any taxes that might be due.
What if you miss the deadline?
If you did not file on time and also have not filed for an extension, a number of penalties could apply, which includes the following:
- Failure to file penalty: The IRS will add a Failure to File Penalty if you do not submit your income tax return on time. The penalty is 5% per month, based on the unpaid taxes, with a maximum of 25%. That can be interpreted to mean that one may be assessed a penalty of $100 if filing is two months late and owing $1,000 in taxes.
- Interest on unpaid Taxes: Apart from penalties, the IRS charges interest on unpaid taxes. The interest changes quarterly and is added to the amount due from the original due date until the tax is paid in full. The interest is compounded daily, meaning that the more you delay paying it, the greater the amount you will have to pay.
- Possibility of higher penalties: If you file your return more than 60 days after the due date, the minimum penalty is either $485 or 100 percent of the unpaid tax – whichever is less. This may be substantial and can make your total tax bill significantly higher if you aren’t able to file on time.
What if you expect a refund?
It’s not as bad if you miss the deadline, but you’re expecting a refund. If you are due for a refund, there are no penalties from the IRS for filing late. You have three years from the original deadline of your return to file and claim your refund. However, the longer you wait to file, the longer it will take to get your money, which could be put to other financial uses.
Options for late filers
In case you are faced with the prospect of missing a deadline, here is what you should do:
- File as soon as possible: Even though you would have missed the deadline, it makes sense to file your return as early as possible. This will reduce penalties and interest, especially in the case of due taxes. The IRS does encourage taxpayers to file late returns to avoid further complications.
- Consider payment plans: If you have taxes due that you can’t pay in full, IRS has several payment plans that can help you settle your tax liability. These include the so-called installment agreements for which you may apply online and get put on a payment plan to settle tax liability over time.
- Seek professional help: If any of this is uncertain or you are not quite sure what to do after missing the deadline, it would be best to consult a tax professional. They can advise you according to your condition and help you go through the intricacies of tax filing.
For military members, they can file their taxes through Miltax, a free tax resource offered through the Department of Defense. Certain people automatically qualify for extra time on their taxes and those people include:
- People in disaster areas or places affected by natural disasters
- U.S citizens or resident aliens working outside the U. S and its territories
- Members of the military on duty outside the U.S and its territories
Missing the IRS deadline in filing tax for 2024 can cost penalties, interest, and further liabilities on taxes. Knowing the rules about extensions and late filing penalties will help you to be more in control over your tax obligations. If you missed the deadline, the key is to file your return as quickly as possible to lessen penalties, then explore options for payment plans in case of tax liability. Staying informed and proactive will boost your confidence as you go through the tax season.
